Wow, the age-old dilemma of growth vs. revenue beautifully explained! It's all about the exit multiple vs. the absolute amount of cash at the end, huh?
@derek969137 ай бұрын
Also, the second company might generate more cash, and thus a PE fund can leverage the cash flow to raise more debt, translating into a higher IRR
@Dotthel9 ай бұрын
Thanks for this. It's an interesting way to look at the type of motivation for the buyer.